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Seinfeld Economics: The Cheever Letters (Trade for cigars)

by Linda Ghent

A black market is one in which certain goods or services are routinely traded in a manner contrary to the laws or regulations of the government in power. Typical reasons why the market goes underground in this way include the desire by substantial numbers of buyers and sellers to evade restrictive government price controls or inconvenient rationing schemes, to avoid paying heavy taxes on the good or service in question, or simply to be able to obtain forbidden goods or services that the government does not want the people to have at all.

Gains from exchange refer to the net benefits to agents from voluntary trading with each other.

 

Seinfeld: The Cheever Letters (Trade for cigars)

Kramer receives a bunch of cuban cigars from George; he trades them to a golf pro for access to a very nice course. When the cigars are lost in a fire, Kramer goes to the Cuban embassy, where he finds that they are illegal. But the Cuban diplomats are willing to trade some cigars for Kramer's favorite jacket...and for access to the nice golf course.

from Seinfeld, Season 4 (1992)
Creator: Larry David & Jerry Seinfeld
Posted by Linda Ghent
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